Economic Systems and Development

Key topics

Economic Systems DevelopmentToyota as an example

of a system – inputs, processes & outputs

Regional economic change

TNCs – pros & consContrasting regions in

Brazil & JapanFactors affecting the

location of industryPrimary, secondary,

tertiary

Measuring development

Improving quality of life by aid and investment

Tourism as a route to development

Toyota case study!INPUTS

•580 acre site•Communications – A60, M1, A38; East Midlands & Birmingham Airports; rail link at Derby; port at Hull•2900 workers live within 30 mins of site•Burnaston employs 2481•Environment – Peak District nearby; sports facilities•Capital - £700m investment by Toyota•Government investment – Derbyshire County Council put in £20m•Energy and services

PROCESSES

•Assembling components to produce Carina E and Corolla models

•Painting cars

•Testing cars

•Research and development

OUTPUTS

•200 000 cars produces each year at the Burnaston plant ready for sale across the EU

•Profit made by Toyota from the sale of the cars

Regional Economic Change: S Wales

1960-1980•New technology couldn’t be used in the narrow coal seams of the Welsh valleys.•Pits elsewhere could produce more coal at lower prices & Welsh mines became uneconomical.•Local supplies of limestone & iron ore began to run out so had to be imported for steelworks•1970s and 80s – world recession led to fall in demand for steel•Overseas producers e.g Brazil & S Korea could produce steel more cheaply•Lack of raw materials, declining market & overseas competition led to closure of many mines & steelworks in the valleys•Remaining steelworks relied on imported raw materials so new steelworks were built near the ports of Port Talbot & Llanwern.

1990 - 2000•Closure of mines had negative economic and social impacts stemming from unemployment which the government tried to tackle.•Valley given assisted area status to give new firms grants for building, machinery & training.•Welsh Development Agency set up to attract new industries through advertising•European Regional development Fund has invested in site provision, training & access, including an extension to the M4•Transport also improved by construction of a second bridge over the River Severn•Industrial estates built offering low rents, good communications and new modern buildings at Swansea, Port Talbot, Newport & Bridgend.•New firms attracted include Sony at Bridgend and AIWA hi-fi & CD factory at Newport

The impact of TNCS

Positive Negative

Brings employment opportunities

Workers have opportunities for education & training

Brings new technologies

Develops export market

Profit often sent to country where TNC is based (usually an MEDC)

Environmental effects

Potential for exploitation of workers